In a new Fannie Mae survey from December 23, consumers expect mortgage rates to go down over the next 12 months leading to a positive increase in Home Purchase Sentiment Index.
In the survey 31% expect mortgage rates to decrease, 31% expect rates to increase, and 36% think rates will be unchanged. Although this is far from a consensus, it is a slight shift from doom and gloom to better times ahead for prospective home buyers. These expectations were spurred from the FED Reserve saying they are likely to cut rates in 2024.
Even though we are a long way off from the historically low rates home buyers have enjoyed for the last decade, prospective buyers and sellers are feeling more positive about market conditions. The increase was subtle but its a step in the right direction.
Here are the Highlights from the survey:
Good/bad time to buy: The percentage of respondents who say it is a good time to buy a home increased from 14% to 17%, while the percentage who say it is a bad time to buy decreased from 85% to 83%. As a result, the net share of those who say it is a good time to buy increased 5 percentage points month over month.
Good/bad time to sell: The percentage of respondents who say it is a good time to sell a home decreased from 60% to 57%, while the percentage who say it’s a bad time to sell increased from 40% to 42%. As a result, the net share of those who say it is a good time to sell decreased 5 percentage points month over month.
Home price expectations: The percentage of respondents who say home prices will go up in the next 12 months decreased from 41% to 39%, while the percentage who say home prices will go down remained unchanged at 24%. The share who think home prices will stay the same increased from 35% to 36%. As a result, the net share of those who say home prices will go up in the next 12 months decreased 2 percentage points month over month.
Mortgage rate expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months increased from 22% to 31%, while the percentage who expect mortgage rates to go up decreased from 44% to 31%. The share who think mortgage rates will stay the same increased from 34% to 36%. As a result, the net share of those who say mortgage rates will go down over the next 12 months increased 22 percentage points month over month.
Job loss concern: The percentage of respondents who say they are not concerned about losing their job in the next 12 months decreased from 76% to 75%, while the percentage who say they are concerned increased from 23% to 24%. As a result, the net share of those who say they are not concerned about losing their job decreased 3 percentage points month over month.
Household income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago increased from 19% to 20%, while the percentage who say their household income is significantly lower increased from 12% to 13%. The percentage who say their household income is about the same decreased from 68% to 67%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago remained unchanged month over month.
Time will tell if the economy has achieved a soft landing or if there is trouble around the corner but the masses are starting to feel better about the situation.
If you’re looking to buy or sell a property, feel free to contact Homeinc visiting our website or calling (888) 850-2636
SOURCE: FLORIDA REALTORS.ORG
CREDIT: AMY CONNOLLY
